This Super Popular Food Delivery App Is About to Disappear
One of America's oldest online ordering platforms will soon cease to exist as its own brand, impacting hordes of urban customers who have been using it for years. Seamless, the food delivery app that's most prominent in New York City, will be absorbed by Grubhub later this year, the parent company Just Eat Takeaway.com (JET) announced.
The Seamless app was founded in 2009 as a corporate ordering platform by two lawyers but gained wider popularity after it was acquired by Grubhub in 2013. According to Restaurant Business, the merger created one of the nation's largest online takeout companies.
Currently, however, Grubhub and Seamless, along with Eat24, which is another subsidiary of Grubhub, capture about 16% of the national food delivery business, lagging behind competitors like Uber Eats and DoorDash as of last month. Their strongest presence is in urban areas like New York, Chicago, Boston, Philadelphia, Houston, and Los Angeles. And it's likely to stay that way—the parent company announced that Grubhub's strategy is shifting from national to local, where instead of attempting to grow all over the country, the company will focus its efforts on its geographic strongholds.
"We strongly believe that the U.S. cannot be seen as one market, like the U.K. or Germany, but that each metropolitan area has its own characteristics," said Just Eat Takeway.com's CEO Jitse Groen on a recent earnings call. "We will therefore refocus strategic efforts to Grubhub strongholds whereby the focus will be to expand from that stronger base, rather than target the whole country."
More details about the transition, including how this will impact users, will be revealed at JET's investor day in October.
For more, check out:
- This Giant Retail Chain Just Added Alcohol to Pickup And Delivery Services
- Costco Is Now Offering Two-Day Delivery On These Food Items
- 7 Unhealthiest Takeout and Delivery Foods Ever
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